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Silvercorp’s (TSX:SVM) quarterly production holds steady

Mining
TSX:SVM
17 July 2020 15:51 (EDT)
SilverCorp Metals Inc - Chairman and CEO, Rui Feng

Source: National Observer

Silvercorp Metals (SVM) has posted the production results from its previous quarter, ended June 30.

Silvercorp mined a total of 254,555 tonnes of ore for the quarter, of which 174,176 tonnes came from the Ying Mining District and 80,379 tonnes from the GC mine.

This represents a one per cent dip against 2019’s comparative quarter, when the company produced 257,392 tonnes. Further, Silvercorp produced approximately 1.8 million ounces of silver, 20.1 million pounds of lead and 7.5 million pounds of zinc.

The 1.8 million ounces of silver represents a 10 per cent decrease against the previous year’s results.  The company attributed the decrease to a drop in average head grade at the Ying Mining District project, which fell from 330 grams per tonne to 293 grams per tonne.

However, the company maintains the drop is mainly related to its planned mining sequence, and is in line with previously provided guidance.

Meanwhile, the company’s lead production increased one per cent for the quarter, while zinc production increased four per cent for the quarter.

The company also revealed that metallurgical recovery rates at its GC Mine have slightly improved.

Silvercorp recovered 82.8 per cent silver, 89.8 per cent lead and 87.3 per cent zinc at the site. This is an improvement when compared to 76.8 per cent silver, 88.7 per cent lead and 85.7 per cent in 2019’s same quarter.

The lower limits of the company’s fully-year guidance currently sit at 6.2 million ounces of silver, 66.1 million pounds of lead, and 24.5 million pounds of zinc. Thus far, Silvercorp maintains it is on track to meet this guidance.

Silvercorp Metals (SVM) is up 8.4 per cent and is trading at C$8.90 per share at 11:00 am EDT. 

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